MGMT 310 chapter 1 - 6 :)
In developing a business-level strategy, a manager must answer three fundamental questions:
(1) Who do we serve (a broad or narrow market segment)? (2) What do we provide (a small or large range of products or services)? and (3) How do we provide it (our unique production approach or delivery processes)
3 primary goals of ASEAN
- accelerate economic growth - promote social and cultural development - ensure peace and stability
the three rules for managers to strike the right information in a privacy dilemma
- info should be directly relevant to the issue at hand - employees must have the opportunity to give consent - the methods of learning info should be ordinary and responsible
what is scientific management
A focus on how jobs, work, and incentive schemes could be designed to improve productivity using industrial engineering methods
Define Organization
A group of people who work together to achieve a common goal or perspective
Which of the following is not an example of a firm's competitive response to a change in the global business environment? A business-to-business (B2B) firm researches laws regulating wholesale trade in the European Union, including standards for storing and shipping hazardous and perishable materials. An accounting and consulting firm varies its professional compensation plan to better fit employees' expectations in different countries and thereby attract top talent. As a company strengthens its online presence, it maintains its website in English only and offers products that have proven popular among American consumers. Understanding that much of the population in the Middle East is under 25, a technology firm conducts market research to find out how the new generation's tastes and values differ from those of their parents.
As a company strengthens its online presence, it maintains its website in English only and offers products that have proven popular among American consumers.
When a company's organizational design changes, effective managers should also anticipate doing which of the following? - Keeping the company's leadership practices the same but changing its strategic position - Changing the company's leadership practices and strategic position - Keeping the company's leadership practices and strategic position the same - Keeping the company's strategic position the same but changing its leadership practices
Changing the company's leadership practices and strategic position
what is the bureaucratic organization structure
Created by Max Weber , its when tasks and responsibilities have a clear differentiation among workers there's coordination through a strict hierarchy of authority, decision rights, rules, and procedures vertical separation of planning and execution so that plans are made in the upper ranks and executed in the lower ranks
T/F organizations don't differ depending on if they were designed to stable or innovative tasks
False
TF Organizations often evolve based on input of people who are several levels below CEO
False
What was formed as a temporary measure to lower tariffs
GATT
Changes in technology, government regulations, and the economy are all aspects of an organization's
Global business context
Criticism about boards of directors has led more companies to make sure the people on their boards are: Independent managers Unpaid Lower-level managers Company executives
Independent managers
How can we get our part-time employees to share our vision of creating identities for our clients? which Pillar of Managing Organizations
Individual leadership
management or leadership - set direction - Align people - motivate and inspire
Leadership
Managers who develop a vision for how the company will achieve a competitive advantage are operating in the ---- pillar of managing organizations.
Strategic position
When the leadership team of a financial services company with an international clientele is discussing how to respond swiftly to large swings in currency exchange rates, they are considering the --- nature of the business environment.
Volatility
How Business operate V U C A
Volatility Uncertainty Complexity Ambiguity
what is considered a threat of substitutes
a competitors product or another product that satisfies the same customer needs the very threat of substitute products or services can limit an industry's profit potential by placing a ceiling on the prices the companies in an industry can charge.
When a business grows through unrelated diversification, acquiring companies in different industries, it is called __________. a. a competitive advantage. b. a conglomeration. c. a strategy. d. the planning process.
a conglomeration.
The interplay of strategy , organizational design , and individual leadership provides context can directly impact --
a firms strategic opportunities and individual management
what is an organizationally desired result, product, or end state.
a goal
what is it when two firms come together to form a new company in a market
a joint venture
a --- is what a business stands for and what its purpose is
a mission
what defines a firms reason for existence
a mission statement
what often states what activities the firm performs or what markets it is trying to serve and how it distinguishes itself from competitors
a mission statement
the 4 things that define character
a persons ability to recognize the moral elements of a situation how well a person makes moral judgements how consistent a persons actions are with those judgements how well a person can teach others to exhibit character
Define core competencies
a set of skills, talents, and capabilities in which a firm is particularly strong
Define stakeholder theory
a stakeholder is any group or individual who can or is affected by the achievement of an organizations purpose
what articulates a view of a realistic, credible, attractive future for an organization, a condition that is better in some important ways than what now exists.
a vision
what if the overall success rate of joint ventures
about 50% issues : members of the joint venture may have different strategic interests, consequently affecting their ability to collaborate. For governance, most joint ventures are designed to allow both partners to share control, a construct that often leads to disagreement. Finally, many partners in joint ventures find it difficult to overcome the vast cultural differences that exist between the partners.
A firm's strategic choices and leadership approaches need to: a. adapt and change to retain their relevance. b. be rigid and concrete to be effective. c. be independent of each other. d. steer clear of cultural and socioeconomic influences.
adapt and change to retain their relevance.
The stakeholder view of the firm does all of the following except: a. aims to produce the highest possible stock market valuation of the firm's assets. b. helps managers understand the internal and external environment. c. identifies and analyzes multiple groups that interact with the firm d. aligns organizational practices to satisfy the needs of these various groups
aims to produce the highest possible stock market valuation of the firm's assets
firm pursues a strategic -- when the cost of creating an internal entity or developing a capability is higher than the cost associated with forming the alliance
alliance
in an --- partners come together by contract to engage jointly in activities in a market
alliance
what involves a firm sharing resources or capabilities with a counterparty for the mutual benefit of both
an alliance
in setting what strategy will a manager evaluates both the attractiveness of the industry structure and the firm's resources to determine how the firm should compete.
business level strategy
what describes how a company will compete in a given business and position itself among its competitors
business level strategy
how an organization creates and sustains competitive advantage in an industry is driven by what two types of strategies
business level strategy corporate level strategy
Responsive firms are characterized by all the following behaviors except: a. businesses maximize their profit within the limits of the law. b. they design plans and policies to respond to the changing conditions. c. they monitor and assess environmental conditions on a constant basis. d. they seek to identify the needs of their stakeholders.
businesses maximize their profit within the limits of the law.
According to Weber, which of the following is a feature of an ideal bureaucracy? a. A flat structural organization with few or no levels of separation between managers and their subordinates b. The prevalence of informal social relations at work c. Clear differentiation of tasks and responsibilities among individuals d. Coordination achieved through interpersonal communication and networking
c. Clear differentiation of tasks and responsibilities among individuals
what Component of Strategy David is developing a strategy for his company that sells tour packages. He discovers that if his tours include rooms in no-frills hotels and provide only limited time with a guide at the destination, instead giving tour members brochures that suggest self-guided walking tours and popular tourist destinations they can find on their own, he can sell his packages for up to 25% less than his major competitors do. He plans to market his tours with inexpensive late-night infomercials.
chasing a set of activities
what Component of Strategy Joclyn, a successful writer, decides to write a series of mysteries set in New England. Each fall, she will travel throughout New England to sign books in bookstores, meet with book clubs that are reading one of her mysteries, and give talks to students in creative writing programs at universities.
chosing a set of activities
What is the second step in stakeholder mapping
define the stakes that each group seeks through its involvement with the firm - this will help get a better understanding why someone has an interest in the organization and hoe once can start to address the interest
What deals with distribution of wealth among members in a society
distribution justice
what occurs when a firm is the first to offer desirable products or services that secure customer loyalty.
first mover advantage
what narrows the scope to focus on a niche market within an industry
focus strategy
regulations and laws that a firm encounters in it's market
legal dimension
what allows many firms to test a foreign market before seeking a higher-impact entry strategy
licensing
what is a contractual arrangement "whereby the selling firm allows its technology, patents, trademarks, designs, processes, know-how, intellectual property, or other proprietary advantages to be used for a fee
licensing
t/f establishing a wholly owned subsidiary is expensive and risky
true
What are the three pillars of managing organizations
- strategic positioning - organizational design - individual leadership
Conditions That Promote Intense Rivalry and Price Competition
- the product or service offered lacks differentiation and has low switching costs for its buyers - Fixed costs for firms in the industry are high, and marginal costs are low - capacity must be expanded in large increments - the product is perishable - competitors are numerous or equal to size and power - industry growth is slow - exit barriers are high
characteristics of a powerful customer group
-The group is concentrated or purchases in large volumes relative to the supplier -The sellers' products are undifferentiated -Buyers face few switching costs in changing vendors -Buyers could potentially integrate backward to produce the industry's product
When a company's global business context changes, effective managers should also anticipate doing which of the following? Keeping the company's leadership practices the same but changing its strategic position Changing the company's strategic position, organizational design, and leadership practices Keeping the company's strategic position, leadership practices, and organizational design the same Keeping the company's strategic position the same but changing its leadership practices
Changing the company's strategic position, organizational design, and leadership practices
When a manager is able to see beyond the day 2 day operations, understand the impact of environmental factors on their business operation they posses
Contextual Intelligence
When would the manager assign probabilities to alternate futures and then begin to map out series of steps to prepare the firm
Contingency planning
In order to evaluate the external fit of a strategy, a firm must ask which of the following questions? a. Can the firm effectively execute the strategy? b. Does the strategy leverage the firm's key resources? c. Does the strategy provide a distinct, differentiated, and sustainable position in the marketplace? d. Does the strategy fit with the environmental landscape?
Does the strategy fit with the environmental landscape?
How is it possible to coordinate and motivate people to work together
Effective leadership
Which of the following statements is true of Kantianism? a. It suggests that people should use a cost-benefit analysis to select the option that best suits their own interests. b. It focuses purely on the positive and negative consequences of actions. c. It assumes that motives are important when judging moral action. d. It holds the "greatest happiness principle" as the foundation to its ethical theory.
It assumes that motives are important when judging moral action.
Who believed that everyone should be permitted the max amount of moral rights and once basic equality is achieved, inequalities may exist between members if it will benefit everyone in a society
John Rawls
management or leadership - organize and staff - plan and budget - control and problem solve
Management
objectives vs. tactics vs. strategy
Objectives define what the firm seeks to achieve. Tactics describe how the firm seeks to achieve its objectives strategy is the way in which a firm positions itself in the marketplace and aligns its resources around that positioning.
What kind of business should we create? Would a sole proprietorship, a limited liability partnership, or a corporation be the best structure for our company? which Pillar of Managing Organizations
Organizational design
--- is the notion that rules should be clearly stated, consistently obeyed, and impartially enforced. a. Ethics b. Conventional morality c. Procedural justice d. Kantianism
Procedural justice
What is the key Focus of managerial view
Production
What did Frederick Taylor want to improve
Productivity
states that resources are strengths that firms can use to conceive of and implement their strategies Based on this theory, a firm can develop a competitive advantage through the collection and harvesting of resources. The theory also assumes that not all firms have the same resources and capabilities within the same industry and that these advantages can be long lasting.
Resource-Based View of the Firm
What method Did Frederick bring
Scientific Management
_______ focuses on how jobs, work, and incentive schemes could be designed to improve productivity using industrial engineering methods. a. The human relations movement b. The contingent view of management c. A bureaucracy d. Scientific management
Scientific management
What can we offer to clients that they can't get from any other screenprinting company? which Pillar of Managing Organizations
Strategic position
success in business requires the ability to devise and nurture a defencible
Strategic position
A single market run by a system of laws followed by all members, guarantying the freedom of movement of people, goods, services, and capital is --
The European Union
What did max weber create
The bureaucratic organization
Define business environment
The combination of all contextual forces and elements in the external and internal environments of a firm.
Usually includes GDP, inflation, unemployment, customer sentiment, and interest rates of all the countries where it sells its products
The economic dimension
Store managers at a pet supply retailer notice a sharp increase in the number of customers asking for products for capybaras, a South American rodent nearly the size of a mastiff. Which component of the strategy formulation process will the company use to incorporate this information? The development of the company's vision and mission The emergent component of strategy development The systematic assessment of the external environment The planned component of strategy development
The emergent component of strategy development
Which of the following is a disadvantage of franchising? a. Franchising is a low-cost means of market entry. b. The franchisor is responsible for monetary risk. c. The franchisor provides the brand name and managerial processes. d. The franchisor may lack the ability to enforce a guideline.
The franchisor may lack the ability to enforce a guideline.
Which of the following statements about strategy development is false? a. Some firms have very stable strategies. b. The inputs to the emergent aspects of strategy development are top-down. c. Including frontline managers in the reassessment of strategy increases consensus on new tactics. d. It is difficult to predict how competitors will respond to another firm's actions.
The inputs to the emergent aspects of strategy development are top-down.
what is the shareholder view of the firm
The job of top managers was to produce the highest possible stock market valuation of the firms assets
What led early business leaders to focus on corporate planning and analysis as the basis of strategy
The need to understand the competitive landscape
processes, technologies, or systems that a firm can use to produce outputs. often includes the technology behind a firm's manufacturing line or the hardware or software used to run its distribution system.
The technological dimension
When creating a strategic plan, what is the primary purpose of analyzing the company's internal and external environments? To determine whether a specific manager should be in charge of a designated product To determine what parts of the company will accept responsibility for creating future products To understand how the company can satisfy the needs of its major stakeholders To specify the outcomes that the company will achieve in the upcoming year
To understand how the company can satisfy the needs of its major stakeholders
T/F Organizations should fit contextual factors to preform effectively
True
TF Leaders must know who they are and what gets them to effectively motivate and influence others
True
TF The skills required for success can be different depending on someones level and responsibilities within the organization
True
what claims that moralitys primary function is to develop a virtuous character, similar to the way people develop skills such as creativity and conflict management
Virtue ethics
Define SWOT analysis
an analysis process that acquires information on an organizations internal environment and capabilities strengths and weaknesses Internal strengths might include specific human resources skills, proprietary technology, or lean manufacturing techniques.
Strategic CSR refers to corporate social responsibility activities that: a. will make maximum impact on the community. b. can be implemented in less than six months. c. garner maximum publicity and appreciation for the company. d. are directly related to the business objectives of a company.
are directly related to the business objectives of a company.
different types of customers can exert different levels of pressure on a company based on their ..;
bargaining power
According to the 5 forces model, the threat on entry into an industry depends on the
barriers to entry
what the obstacles that a new entrant may face while trying to enter a market or an industry. some best examples are high capital investments needed to enter the industry and the high costs of customers switching from one company to another
barriers to entry
How can a manager enhance contextual intelligence (4)
be reflecting and understand past situations and how it impacted the business seizing firsthand experiences stay attuned to trends engage in scenario building and contingency planning
Define the Human relations movement
belief that organizations must be understood as systems of interdependent people who all care about the survival and functioning of the firm
what may incumbency advantages include
better technology preferred access to raw materials government subsidies a better brand
group of individuals elected by shareholders and charged him with overseeing the general direction of the firm
board of directors
What organizational structure has coordination through a strict hierarchy of authority, decision rights, rules, and procedures
bureaucratic organization structure
define managerial view
business framework where the firm is seen as a mechanism for converting raw materials into products to sell
Supporters of globalization and free trade claim that reducing trade barriers increases economic prosperity for all. These supporters point to the theory of --- as an argument for globalization.
comparative advantage
what derives from a firm's ability to create value for its customers that exceeds the cost of producing the product or service.
competitive advantage
when people engage in activities on behalf of the company and have a personal interest in the outcome
conflict of interest
General Electric is a company that used -- to acquire and hold companies in the aerospace, consumer appliances, entertainment, financial services, health care, media, power generation, sensors, transportation, and water technology industries.
conglomeration
Mr. Ray, the owner of Ray's Jewelry, used --- to identify two possible plans of action for his company: If the price of gold stays below $2,000 per ounce, he will continue to make and sell wedding bands and gold jewelry, but if it rises above $2,000 per ounce, he will start crafting his jewelry from silver and carry only a limited number of gold wedding bands.
contingency planning
in contrast to joint ventures, --- do not make a new entity
contractual alliance
Ryan is the manager of Home Repairs Inc., a company that provides a wide range of repair and maintenance services. He claims that Home Repairs is the only company that sends technicians to a client's place for repair work within an hour of the client's call to the company. His company offers its services at very affordable prices. Home Repairs distinguishes itself from other companies by providing discounts for people who sign up for memberships. This scenario describes the company's: a. objectives. b. core competencies. c. mission statement. d. vision.
core competencies.
what strategy decisions are made at a higher level than business-level strategic decisions and typically apply to companies that operate in multiple businesses
corporate level decisions
what strategy is the way that a company seeks to create value through the configuration and coordination of multi market activities
corporate level strategies
what strategy typically includes how many industries to compete across, whether to vertically integrate, whether to buy or sell companies, and how to share resources across divisions.
corporate level strategy
first described in 1953 as business's obligation to pursue the policies, decisions, and actions that align with the objectives and values of society.
corporate social responsibility
the basic assumption behind ---- is that business and society and innately interwoven
corporate social responsibility
aims to prove a product to as many people as possible for as low as possible
cost leadership
For a strategy to be effective and defensible, a manager must
create fit and alignment among its chosen activities
what Component of Strategy A cloud data storage company develops a proprietary system of hardware and software, trains its systems analysts on the technology, and develops redundant backup and monitoring processes to ensure the integrity of customer data.
creating fit
what Component of Strategy An accounting firm has hired consultants to write proprietary financial management software that it uses to service its clients. It also uses unique accounting methodologies and has established a team-based structure that best leverages various employees' talents while maximizing accountability.
creating fit
At Theo Chocolate, managers want to be sure that their products will be competitive given the culture of the company, the company's efforts to treat chocolate producers fairly, and the goal of educating the public about fair-trade chocolate. Considering all of these factors relates to the --- component of the strategic planning process.
creating fit among activities
Cindy was called in for interview at a women's fashion magazine for the post of editor. During the interview, the interviewer told Cindy that the work environment of the organization was very vibrant, and that although employees worked long hours, they also regularly enjoyed themselves at employer-sponsored dinner parties and weekend trips. In this case, the interviewer was telling Cindy about the _____ of the organization. a. task environment b. legal dimension c. culture d. general environment
culture
what arises in situations where any buyer's willingness to pay for that product increases as the number of other buyers for that product increases.
demand side benefits of scale
After stakeholder mapping is done, what should the manager do next
develop mechanisms in the firm that can better identify and respond to new stakeholders
For an organization to be successful, where do managers and leaders need to be developed
developed at all levels of a firm
In management, after you find your strategy, what is the second most important thing
developing and aligning the organizational components
By communicating its values around fair trade and organic cocoa farming to consumers, as well as using distinctive packaging for its chocolate bars, Theo Chocolate is choosing a set of activities that supports a --- strategy.
differentiation
Every company must distribute its product or service to customers through
distribution channels
Cadmia, a small island nation, recently revised its income-tax law. The new law sought to increase taxes on wealthy corporations and citizens with higher incomes. Surprisingly, everyone responded positively to the tax revision as they believed that it will decrease inequality in the nation. In this scenario, the people of Cadmia have demonstrated support for: a. justice. b. procedural justice. c. distributive justice. d. morality.
distributive justice
what are the three core domains where business has responsibility
economic legal ethical
what refers to a business responsibility to make a profit and increase shareholder value
economic responsibilities
achieved when the large volume of a product produced by a firm enables it to reduce the per unit cost
economies of scale firms costs are spread across more units
the constantly changing nature of the external environment requires managers to engage in
environmental scanning
what allows managers to scour the business horizon for key events and trends that will effect the business in the future
environmental scanning
Sally is the manager of Grubb It, a fast-food outlet. She is looking out for trends or events that could turn out to be a problem for the outlet in the future. She believes that the outlet's close proximity to a school could pose a problem, because of a growing concern over childhood obesity. In this scenario, Sally is involved in: a. contingency planning. b. a strategic review process. c. environmental scanning. d. stakeholder mapping.
environmental scanning.
Define Utilitarianism
ethical philosophy claiming that all behaviors are consider moral if they produce the greatest good for the greatest number of people
Ethics vs. Morality
ethics studies moral standards and their effect on conduct and behavior morality is the standards that people use to judge right from wrong
practice of --- involves shipping a firm's products from its domestic home base to global markets.
exporting
one of the biggest challenges of an ----- is the loss of control over sales and marketing in the international market
exporting strategy
Imagine that General Mills' senior managers meet to discuss the company's U.S. retail food strategy. The managers consider the question, "With the acquisition of Annie's and investment in our natural food brands, how well does our product portfolio match consumers' tastes?" Which criterion are they using to evaluate the company's strategy? Differentiation External fit Internal fit Implementability
external fit
T/f Managers who engage in environmental scanning don't usually produce stronger financial results
false
t/f globalization makes things easier for managers
false
t/f privacy is protected in the bill of rights
false
exists when a party—an individual or a business—is entrusted with property, information, or power to make decisions on behalf of another party
fiduciary responsibilities
What is the key Focus of shareholder view
financial performance
What are important topics/information discussed during the strategic review process
financial performance and targets new business prospects research and development updates competitive threats
What is something that happened to promote the shareholder view
firms wanted to seek new growth opportunities by acquiring companies
a manager should consider factors when entering new markets. in less developed countries, inflation and interest rates can fluctuate a lot because of
fragility and infancy
A(n) _____ strategy attempts to provide a standardized product to all markets without taking into consideration the local tastes and responsiveness of the regions in which the product is being sold. a. transnational b. multinational c. global d. international
global
some firms seek --- to sell more of the same products to a large potential customer base
global strategies
what strategy focuses on developing overall scale economies and global efficiency instead of catering to specific tastes as the primary goal is cost management
global strategies
One of the main goals of a ---- is to take advantage of scale economies in production
global strategy
what Is the result of the reduction of trade barriers and tariffs around the world
globalization
Utilitarianism operates under the
greatest happiness principle
How do you exemplify contingency planning
identifies the specific strategies the firm will adopt under two different regulatory scenarios. Note that this goes beyond scenario building because it includes the actions that will be taken depending on what the future holds.
what is it called when companies maintain cost or quality advantages that aren't easily available to rivals
incumbency advantages
if someone uses inside info to bet for or against a companies stock before that info is public they're engaging in
insider trading
define globalization
integration and interdependence of economic, technological, sociocultural and political systems across diverse geographical regions
When Debra says, "When push comes to shove, it's really a volume game, and we needed to be selling a lot more chocolate" to be profitable, she is assessing the --- environment of Theo Chocolate.
internal
Managers need to understand their --- and --- environments to ensure that they are able to satisfy a broad group of stakeholders
internal and external
what consists of several dimensions that affect the firm from within its boundaries
internal environment
Imagine that General Mills' senior managers meet to discuss the company's U.S. retail food strategy. If the managers discuss whether General Mills should venture into fresh foods when its marketing and manufacturing expertise are in packaged foods, which criterion would the managers be using to evaluate the proposed strategy? Differentiation Internal fit Implementability External fit
internal fit
Plantronics engineers know how to design headsets, but the exact body of the headset will have to be different, depending on the people who wear it. Economies of scale are less important than getting the right technical design and the best headset body for clients.
international
When a company uses foreign subsidiaries to produce and distribute its products overseas, but also performs research and development in the company's home offices, it is most likely to be using --- strategy.
international
what is the cross between global and multinational strategies and Like a global strategy, it maintains control over subsidiaries, but like a multinational strategy, it allows subsidiaries to develop new products and ideas to match local tastes.
international strategies
the typical components of a firm internal environment includes ...
owners board of directors employees culture
firms that pursue an --- compete in markets that do not require high levels of local customization or low-cost production through economies of scale
international strategy
what happens when barriers to entry are lower
it encourages competition and is less profitable for everyone
In a ---- , the foreign firm learns from the local firm's knowledge of the market and country. In addition, both firms typically contribute resources to the venture, allowing both to share risks.
joint venture
Sony, a Japanese electronics company, and Ericsson, a Swedish communication company, created in the United States. The new company, named Sony Ericsson, conducted research and development on new mobile phone technologies.
joint venture
what provides the framework for society to judge what is morally right or wrong, fair or unfair, and establishes ways to evaluate or punish those who behave immorally. it is the notion that moral behaviors must be based on standards of equity, fairness, and impartiality to preserve order in society.
justice
what happens during strategic review process
leaders of a corp meet with business unit managers in s formal review session the business unit managers review the performance of their unit and present their future prospects of the unit
According to the economist Milton Friedman, the goal of a business is to: a. make profits. b. satisfy all its stakeholders. c. serve the society. d. generate job opportunities.
make profits.
when shareholders were no longer individuals but institutions with more of a voice what was the result
managerial focus shifted to the interest of shareholders as the primary stakeholder for whom they worked
up until the 60's , shareholders didn't have as much power mutual funds had not been developed and corporate takeovers weren't yet popular what was the result of this
managers didn't face as many threats from shareholders to improve performance
what Component of Strategy Dreyfus manages a hair and beauty salon. To best position the salon to serve its neighborhood, he decides to hire only stylists trained in the care of African American hair and skin and stock only products aimed at African Americans.
managing tradeoffs
What is the first step of stakeholder management
map all of the stakeholder relationships relevant to the firm
To build contextual intelligence, a manager should not: a. seize firsthand experience. b. stay attuned to trends. c. develop an awareness of history. d. map stakeholder relationships.
map stakeholder relationships.
what refers to the overall market size of a particular region and its growth prospects
market potential
Nathan works at GoDrive Rentals, a car rental company. His job involves motivating and developing the company's sales teams as well as working with senior executives in developing and refining the company's marketing and sales strategies. From the given description, it can be concluded that Nathan is most likely a(n): a. HR manager. b. senior executive. c. entry-level employee. d. middle-level manager.
middle-level manager
An effective --- will build motivation among employees, provide employees with direction and inspiration, and assist in making strategic trade-offs.
mission statement
People who follow distribution justice are egalitarians and they believe that individual differences are --
morally insignificant
Define Kantianism
motives are critically important when judging moral action. In other words, people must make the right decisions for the right reasons.
Jed and his management team feel that there are many different markets for Bluetooth headsets and that the headsets must match people's preferences in the regions where they are sold. Managers are willing to allow subsidiaries to perform all corporate functions at all levels.
multinational
firms use --- when it is important to be responsive and sensitive to local needs and tastes; this approach usually involves significant customization of a firm's products
multinational strategies
In the----, the parent company organizes local subsidiaries and gives them autonomy to develop products tailored to local tastes.
multinational strategy model
what outlines what a firm hopes to achieve within a specific time frame in areas including financial performance, market share, or product introduction
objectives
what provides a series of milestones a business has accomplished
objectives
what are some organizational components
performance HR Practice Culture Organizational design
political events and activities in a market that affect a firm
political dimension of external environment
what tool can be used as a starting point for identifying the strengths and weaknesses of an industry. This tool can also be used to assess which forces a firm might try to modify to make the industry more attractive for them.
porters 5 forces model
firm's general environment represents
primary external forces that a affect a firm. some are stronger than others politics in healthcare vs a cvs in healthcare
notion that rules should be clearly stated, consistently obeyed, and impartially enforced.
procedural justice
what provides the framework for societies to develop laws that result in fair or just outcomes
procedural justice
comparative advantage
proclaims that countries should specialize in producing goods for which they have the lowest opportunity cost of production
What is the external environment of a firm
represents all the firms external forces that can affect the firm broken up into 2 categories - general environment - task environment
Forecasting the likely result that might occur when several events and stakeholders are linked together is known as: a. contingency planning. b. trend analysis. c. strategic reviewing. d. scenario building.
scenario building.
What is the key Focus of stakeholder view
serving multiple constituencies
what refers to demographic characteristics as well as to the values and customs of a society
sociocultural dimension of external environment
the capability to identify and react to changes in the external environment and to mobilize internal resources to deal with those changes
strategic flexibility
When a company chooses its set of activities, they are, in effect, choosing to occupy a --- in a certain industry
strategic position
what refers to a place in an industry that a firm occupies relative to its competitors by way of the products or services it offers and the method in which it delivers them.
strategic position
what is it when you pursue unique activities that provide value to customers, making trade-offs about which businesses to pursue , what products to produce, and which customers to serve, and aligning resources to achieve organizational objectives
strategy
what is the managers "game plan" for an organization
strategy
The process of analyzing a firm's external and internal environments as well as the firm's vision and mission is an input for ---
strategy formulation
When going through a company determines how it will achieve its objectives.
strategy formulation
what arises when a firm manufactures products or services in high volumes. The ability to produce and sell large volumes results in a much lower production cost.
supply side economics of scale
what are the major sources of barriers to entry
supply side economics of scale , demand side benefits of scale , customer switching costs, capital requirements , incumbency advantages independent of size , unequal access to distribution channels , restrictive government policy
what is a fixed cost that a buyer will encounter if they change the supplier of a particular product or service
switching costs
what often arises because the buyer has to make changes to their product or operating procedure when using a new supply source.
switching costs
such as launching new products, entering new markets, and redesigning the organizational structure, what are the actions that a firm takes to enact its strategy.
tactics
The mastricht treaty established the legal framework for --
the European Union
define leadership
the ability to drive change and innovation through inspiration and motivation
define management
the act of working with and through a group of people to accomplish a desired goal or objective in an efficient and effective manner
What is important to understand for managers looking to conduct business abroad
the economic dimension
During stakeholder mapping, who must decide who can affect or is affected by a firm
the manager
What does the human relations movement emphasize
the role of people and social networks at work
firm's task environment represents
things that directly affect a firm on continuous basis . includes competitors, suppliers, and customers
How can competitive advantage be sustainable
to be sustainable, a firm's strategy must adapt and continue to be appropriate for its changing external environment. At the same time, the firm's strategy must be aligned with its internal capabilities.
what is the goal of creating fit of activities
to reduce cost or increase differentiation at a firm relative to that of its competitors
any type of information used in conducting business that is not commonly known by others. It often provides a strategic advantage for a company over its competitors
trade secrets
what Component of Strategy Marjorie owns a craft store and decides to reduce her purchases of in-store inventory so that she can invest more in website functionality for customers who order products online.
trade-offs
what strategy focuses on local responsiveness, efficiency , and organizational learning
transitional strategy
T/F stakeholder theory is concerned with who can influence a firms decision and who can benefit from those decisions
true
T/f in contrast to the dimension of the general environment, task environment has the ability to exert a greater influence over the firm
true
TF Max's basic tenants of the bureaucratic organization structure are still used today
true
t/f The contingent view of management states that there should be an alignment between an organizations structure, business environment, and leadership of the firm
true
t/f Economic theories of comparative advantage suggest that free trade leads to a more efficient allocation of resources, because free trade encourages countries to specialize in the production of products for which they are the lowest cost producers
true
t/f Fiduciary relationships carry a set of legal responsibilities that go beyond those of ordinary professional relationships. Those responsibilities include candor and disclosure, diligence and care, and loyalty and self-restraint.
true
t/f Kant believend that people should envision their actions as if they became a universal rule. only those actions that remain logical and good under universal conditions are considered moral
true
t/f some stakeholders are more important than others
true
When senior managers of a construction firm gather information to evaluate whether supply trends will have a significant effect on the cost of materials, they are contending with the ---- nature of the business environment.
uncertain
one way to see how a firms resources can support the firms strategy is to conduct ---
value chain analysis
what is a systematic way of examining all of the activities a firm performs and determining how they interact to gain competitive advantage.
value chain analysis Value chain analysis separates a firm into its various activities to better understand total costs in the system and potential sources of firm differentiation.
A company's ---- often motivates people to join the company and perform at very high levels.
vision
For the firm to be successful it must have a clear --- of how it wants to bring value to customers and satisfy various stakeholders
vision
Moral dilemmas faced by businesses include all of the following except: a. information can be used for control, power, and manipulation. b. shared information can lead to identity theft. c. water pollution is a problem that challenges business and society. d. the transmission of information
water pollution is a problem that challenges business and society.
How does a firm achieve a competitive advantage?
when it makes more economic value than competitors by engaging in a strategy that is difficult/impossible for others to replicate
When did NAFTA go into effect?
when the US, Canada, and Mexico signed the treaty to eliminate tariffs among each other
The release of evidence of illegal or immoral conduct by a member of an organization to executives in the company or regulating agencies outside the company is known as:
whistle blowing
what do distribution channels include
wholesalers and local retailers
--- allows the parent company to maintain tight control over the new enterprise. This control becomes important when the firm's products or services involve tightly fitting activities that may be difficult for an alliance or joint venture partner to understand.
wholly owned subsidiary
Quattro Explorations and Production Ltd., a Canadian oil exploration and production company, has --- , Quattro Guatemala, which will explore oil opportunities in Guatemala. All shares of Quattro Guatemala will be purchased by Quattro Explorations and Production Ltd.
wholly owned subsidiary
firm can enter a foreign market through a ---
wholly owned subsidiary
